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EDA MINUTES FEBRUARY 28, 2005 DRAFT 46 47 Motion carried unanimously. 48 49 A. CONSIDERATION OF RESOLUTION NO. 05-01 APPROVING THE 50 CONTRACT FOR PRIVATE DEVELOPMENT BY AND BETWEEN THE 51 LINO LAKES ECONOMIC DEVELOPMENT AUTHORITY AND SCHWAN'S 52 HOME SERVICE, INC., AND AWARDING SALE OF $91,715 TAX 53 INCREMENT REVENUE NOTE 54 55 Ms. Divine summarized the Staff report, stating that Staff is recommending approval. 56 57 EDA Member Bergeson moved to adopt Resolution No. 05-01 approving the contract for private 58 development by and between the Lino Lakes Economic Development Authority and Schwan's Home 59 Service, Inc., and awarding sale of $91,715 Tax Increment Revenue Note. EDA Member Stoltz 60 seconded the motion. 61 62 EDA Member Carlson stated she would note no on this resolution. She indicated one reason is they 63 do not know what they will get on this site, or if it will be better than what is there. She stated the 64 second reason is the Comprehensive Plan goal of reducing taxes. 65 66 EDA President Reinert asked if there was any way they could know what will go there. Ms. Divine 67 stated the site has not yet been sold, although Schwan's has some interested parties. She indicated 68 Staff has asked Schwan's if they would be willing to agree not to sell the site to an automobile use for 69 additional tax incentive and Schwan's has declined. Ms. Divine stated it is possible Schwan's would 70 decide not to sell the property if this is denied, or may sell it to a use that is allowed on the site as it is. 71 She indicated in that case someone could use the site for a number of years with the intent of 72 redeveloping it in the future, without changing the building or doing any improvements now. She 73 indicated this is not a huge dollar amount, so she does not know if it is a make it or break it condition 74 for the Schwan's deal. She stated Schwan's appears committed to being in Lino Lakes, however 75 since the new site is on the freeway it is costing them more. She indicated that Schwan's based their 76 application on the fact that the site had extraordinary costs. She stated Schwan's meets all of the 77 criteria of building standards and TIF standards. She indicated it has been clear that the incentive is 78 based on Lino Lake's desire to keep a long-standing company in the city, and also a desire to 79 redevelop Lake Drive, which this would allow. She stated Staff or Schwan's did not agree to have 80 any specific thing on this site but Schwan's did agree to remove the existing building 81 82 EDA Member Carlson expressed concern about a gas station going on the site, and the fact that the 83 EDAC minutes reflect that the realtor has a gas station interested. She stated this is what is guiding 84 her concern that they may not get a better use for the site. 85 86 EDA Member Bergeson asked that they keep in mind TIF is taxes they do not currently collect. He 87 stated if they do not approve this he believes there is a high probability Schwan's will take the project 88 somewhere that they can get TIF. He indicated what the City would then be left with is a lack of 89 funds to relocate a business that is in the wrong place, and without the benefit of getting additional 90 taxes after TIF runs out. He stressed they are not taking taxes from current taxpayers, and if they do 2